9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1143 - AT - Income TaxRevision u/s 263 - rejection of application u/s 12AA - Held that - There is no dispute with regard to the fact that question of validity of rejection of application for registration u/s 12AA of the Act is pending before this Tribunal. It is also not disputed that the assessments have been framed in pursuance to rejection of application u/s 12AA of the Act. Ld. Counsel for the assessee has relied on the judgement of Hon ble A.P. High Court in the case of ITO Vs. Khalid Mehdi Khan 1977 (1) TMI 26 - ANDHRA PRADESH HIGH COURT thus we hereby direct the A.O. to stay the assessment proceedings for a period of 60 days or till the disposal of present appeal as pending whichever is earlier. - Registry is directed to fix the hearing of appeal on 15.01.2019, in view of the Hon ble President s directive to disposal of stay granted matters expeditiously.
Issues:
Stay of assessment proceedings under section 263 of the Income Tax Act, 1961 pending appeal in ITA No.493/Ind/2018. Detailed Analysis: The appellant sought a stay of assessment proceedings for the assessment year 2013-14 following an order passed under section 263 of the Income Tax Act. The senior counsel for the appellant argued that if the proceedings continued, it would lead to multiplicity of litigation, rendering the assessment null. Reference was made to the case of ITO Vs. Khalid Mehdi Khan (1977) 110 ITR 79, emphasizing the Tribunal's power to stay proceedings. On the contrary, the respondent opposed the stay, claiming no prejudice to the appellant and lack of a prima facie case. The Tribunal considered the submissions, acknowledging the pending validity question of registration rejection under section 12AA in ITA No.493/Ind/2018. The assessments were made following the rejection of the application under section 12AA. Citing the judgment in ITO Vs. Khalid Mehdi Khan, the Tribunal examined the power to grant stay. The Tribunal analyzed the impact of Section 153(2A) and Explanation 1 on the Tribunal's power to grant interim orders. It was concluded that while the Tribunal must consider the limitation period under Section 153(2A), it still retains the authority to grant necessary orders under Section 254(1) of the Act. In light of the circumstances and the principles outlined by the Supreme Court, the Tribunal directed the Assessing Officer to stay the assessment proceedings for 60 days or until the disposal of the pending appeal in ITA No.493/Ind/2018, whichever is earlier. The Tribunal also prioritized the appeal hearing to be expedited, aligning with the directive to dispose of stay matters promptly. Consequently, the stay appeal was allowed, and the order was pronounced in open court on 19.12.2018.
|
